Previous research has argued that the degree of co-movement of stock returns (the R² of a market regression) at country …-level can be explained by the interaction of firmspecific and market-wide information. The R² measure has been used to … governance regimes and weak legal protection of private property rights are more likely to have poor information environments or …

This paper examines the relationship between corporate governance level and the bankruptcy law to such debt variables … as firms? cost of debt and amount of debt under uncertainty (in the Knight´s sense). First we find that the better the … corporate governance and the harsher bankruptcy law, the lower the cost of debt. Second, we find that better governance and a …

We address how lending market competition, measured by banks bargaining power, affects the agency costs of debt finance … costs of debt finance. … and less risky returns. Hence increased lending market competition reduces the agency cost of debt financing. Our analysis …

approach, we characterise the resulting agency costs of debt, derive the "price" of these costs and analyse their dynamics. We … also show how agency costs can be reduced by the design of debt and the possibility of renegotiation. …, stochastic environment. Keeping the firm as an ongoing concern has an option value but equity and debt holders value it …

agency costs of debt finance. It is shown that intensified lending market competition will lead to lower lending rates and … lending market competition will reduce the agency cost of debt financing. …

order to lower its interest costs and one way to do that would be to repurchase a fraction of the outstanding debt. …In the model a fiscal stabilisation is announced under asymmetry of information between the government and the private …